Asian chipmakers were set to take advantage on a major change in the unstable industry. The industry continued to tilt the power steadiness at the expense of gadget manufacturers like Apple Inc. After several years of careful investments that kept the supply regulated, a realignment was expected to be beneficial.
Chipmakers like Toshiba Corp and SK Hynix were ready to receive the rewards of boosting demand for cheap tablets and smartphones in China. China was internationally considered as the largest smartphone market. It would benefit even more with the rise of Chinese mobile producers like Huawei Technologies Co Ltd.
The need for new gadgets with higher memory capacity would power chip sales. This was anticipated to happen even if the market for new handsets did not grow as much as the chipmakers did.
"Chipmakers are reaping the benefits of curtailed investment of recent years just when demand is exploding," said an analyst at I'M Investment & Securities, Hong Sung-ho.
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